National Beverage Calls Glaucus Allegations 'False And Defamatory'

Shares of National Beverage Corp. FIZZ tumbled Wednesday, after Glaucus Research Group suggested the company had manipulated earnings and defrauded investors through a "ludicrous corporate governance structure."

The note stated that CEO and Chairman Nick Caporella had “admitted to manipulating FIZZ’s earnings using a ‘little jewel box’ and by directing his son to create fake invoices.”

Related Link: National Beverage Shares Fizzing Out As Glaucus Alleges Earnings Manipulation

The stock staged a small rebound around 3:30 p.m. ET, after the company issued a response where it called Glaucus’ report “false and defamatory,” arguing that the firm has falsely slandered companies in the past.

“We believe that this ‘report’ was intended to severely manipulate our stock price downward in support of short sellers, whose short position has dramatically increased over recent weeks,” the press release said, as the company denied any wrongdoing.

“Shareholders are cautioned against reacting to the false statements being made. Our financial statements have been and are routinely audited; and we reiterate that we stand behind the integrity of our financial statements and SEC filings,” the Office of the Chairman concluded.